NO TIME FOR POWER NAPS
Technological changes have spurred communication between private industrial players and the public sector around energy management to maintain competitiveness and create benefits for the whole economy.
With technology transforming how we live and work, infrastructure investment is a must for any modern economy. And as 3D printing in the UAE gains traction and new manufacturers seek to set up shop near busy trade routes, there is mounting pressure for general partners raising investment funds or direct infrastructure investors, such as pension plans and sovereign-wealth funds, to remain ahead of the direct impact these technological changes will bring to the industrial segment of Abu Dhabi.
New digital tools are emerging, including 3D-mapping applications, virtual reality, and real-time performance dashboards that seek to fully exploit the benefits of predictive data. Moreover, an ever-growing number of Abu Dhabi's industrial players are stepping up their use of advanced analytics to improve system performance and boost productivity, making it easier to stick to the original budget and time lines for capital projects.
These tectonic technologic shifts come at a time when many new investors are entering the infrastructure market, increasing competition for assets. Simultaneously, the industrial sector of Abu Dhabi is pushing for reforms in the energy field to preserve competitiveness. As such, most of the talks around the use of technology in the Emirate's industrial sector revolve around power management, whether that comes through the integration of new assets in existing processes or increasing efficiencies to preserve competitiveness despite increasing competition from the East. In line with the energy strategy announced in 2017, which seeks to reduce carbon footprint of power generation by 70% by 2050, the top-30 private players have opened up a direct channel with the government to raise awareness of the various gaps around the economic ecosystem. The special focuses of these discussions are water usage, cost of power, and oil.
With regards to water, conversation is more straightforward and aims at connecting the dots, making sure industrial water waste is re-used. As for power, electricity prices in Abu Dhabi are still lower than those in Dubai, in 2018 they have gone up to AED0.286/kWh for industrial players with an installed capacity below 1MW and AED0.27/kWh for those above 1MW. However, the issues around the cost of oil and water usage are different in nature. Further increases in fixed costs risk reducing considerably the generated added value of each factory, as margins become tighter and local players face competition from Asian and, more recently, Omani players.
For oil, industry players seek to advance the idea that oil should not be factored in as energy, but as an ingredient in the industrial process. Just like European countries rich in water are facilitated in their usage of water for industrial purposes, players in Abu Dhabi are calling for a similar approach for oil.
There is still a huge opportunity on the manufacturing side, especially in energy-intensive industries, chemicals, paper, and packaging. Demand for oil will increase over the short to medium term, and lower prices may allow the Emirate to implement a very-much-needed technological localization strategy. Given the pace technology is evolving, as stated by Ittihad International Investment's CEO, suppliers and maintenance factories need to be close by to make sure Abu Dhabi's technology never becomes outdated.
If properly addressed, these energy points can lead to widespread savings for multiple stakeholders, even outside the industry segment. As such, a new investment strategy in Abu Dhabi's industrial sector should shy away from the regulated core assets such as water utilities or power generation and look into noncore assets with higher barriers to entry, in the form of capital intensive, long contracts, and very robust client needs at specific physical-access points. Perhaps faster than expected, the Emirate's industrial landscape is moving towards high-capex, streamlined portfolio strategies that seek to ensure long-term sustainability of local economy and predictable cash flows for many years to come.
NO TIME FOR POWER NAPS
TABLE OF CONTENTS
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Juan Carlos Varela, President, Republic of Panama
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Rashed A. Al Blooshi, Chief Executive, Abu Dhabi Securities Exchange (ADX)
TBY talks to Rashed A. Al Blooshi, Chief Executive of Abu Dhabi Securities Exchange (ADX), on highlighting the opportunities available to companies on ADX, adopting best practices in the field, and further developing the market.
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Spheres of Influence
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hmed Omar Abdulla, CEO, Abu Dhabi Polymer Company Ltd (Borouge),
TBY talks to Ahmed Omar Abdulla, CEO of Abu Dhabi Polymer Company Ltd (Borouge), on the impact of its new Borouge 4 plant, specialized solutions for global challenges, and the need to continue to invest in innovation.
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Philippe Peccard, President Middle East Engineering & Investment Projects, Linde Group
TBY talks to Philippe Peccard, President Middle East Engineering & Investment Projects of Linde Group, on being a key partner of its regional partners, developing the downstream value chain, and further enhancing operations with technology.
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Ali Vezvaei, Executive President & CEO, Bilfinger Middle East
TBY talks to Ali Vezvaei, Executive President & CEO of Bilfinger Middle East, on its keys areas of focus in the UAE, trends in the hydrocarbons sector, and the application of energy efficiency technologies to new sectors.
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Samia Bouazza, Managing Director , Multiply Marketing Consultancy
TBY talks to Samia Bouazza, Managing Director of Multiply Marketing Consultancy, on satisfying sophisticated consumers with high purchasing power, targeting different categories of the population, and thinking globally while acting locally.
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Yousuf Al Shaibani, Director General, Mohammed Bin Rashid Space Centre (MBRSC)
TBY talks to Yousuf Al Shaibani, Director General of the Mohammed Bin Rashid Space Centre (MBRSC), on the goals of the national space program, attracting youth to the program, and the significance of KhalifaSat.
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Abdulla Jassem bin Kalban, Managing Director & CEO , Emirates Global Aluminium (EGA)
TBY talks to Abdulla Jassem bin Kalban, Managing Director & CEO of Emirates Global Aluminium (EGA), on its expansion upstream, strategies to grow the sector, and sustainability initiatives.
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Sheikh Abdulla bin Mohammed Al Hamed, Chairman , Department of Health (DoH)
TBY talks to Sheikh Abdulla bin Mohammed Al Hamed, Chairman of the Department of Health (DoH), on facilitating investment for local and foreign investors and building and maintaining a sustainable workforce.
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Balanced Learnıng
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Noura bint Mohammed Al Kaabi, Minister , Culture and Knowledge Development
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Mohamed Khalifa Al Mubarak, Chairman , Department of Culture and Tourism (DCT)
TBY talks to Mohamed Khalifa Al Mubarak, Chairman of the Department of Culture and Tourism (DCT) Abu Dhabi, on the role of innovation, the late Sheikh Zayed's cultural vision, and strengthening cultural engagement among youth.
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Saif Saeed Ghobash, Undersecretary , Department of Culture and Tourism (DCT)
TBY talks to Saif Saeed Ghobash, Undersecretary of the Department of Culture and Tourism (DCT) Abu Dhabi, on becoming a beacon of cultural tourism, tailoring its approach to different markets, and penetrating the MICE segment.
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Humaid Matar Al Dhaheri, Group CEO , Abu Dhabi National Exhibitions Company (ADNEC),
TBY talks to Humaid Matar Al Dhaheri, Group CEO of Abu Dhabi National Exhibitions Company (ADNEC), on fast-tracking Abu Dhabi's economic diversification, the importance of the Year of Zayed, and technology's impact on the world of event planning.
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Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister , Climate Change and Environment
TBY talks to Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Climate Change and Environment, on the UAE's commitment to reducing its ecological footprint, transitioning to a climate-resilient green economy, and the importance of sustainable green finance.
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Neri Askland, Vice President , Middle East and UAE Country Manager of Statoil
TBY talks to Neri Askland, Vice President of Middle East and UAE Country Manager of Statoil, on its efforts to help reduce its carbon footprint, opportunities for R&D in the area, and its collaboration with Masdar.
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The Nuclear Option
The UAE is the first country in the MENA region to develop nuclear power, with Abu Dhabi's Barakah nuclear power plant. The Emirate hopes to achieve energy security and embrace alternative sources of energy, ensuring full cooperation and support from the international community.
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Christer Viktorsson, Director General , Federal Authority for Nuclear Regulation (FANR)
TBY talks to Christer Viktorsson, Director General of Federal Authority for Nuclear Regulation (FANR), on the role of the institution in advancing the nuclear energy regulatory environment, the Barakah Power Plant, and the importance of an integrated network.
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Eng. Omar Husain Al Hashmi, Acting Managing Director , Abu Dhabi Sewerage Services Company (ADSSC),
TBY talks to Eng. Omar Husain Al Hashmi, Acting Managing Director of Abu Dhabi Sewerage Services Company (ADSSC), on its successes with STEP, helping Abu Dhabi to reduce its carbon footprint, and its successful Emiratization policies.
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Saeed Al Bahri Salem Al Ameri, Director General , Abu Dhabi Food Control Authority (ADFCA)
TBY talks to Saeed Al Bahri Salem Al Ameri, Director General of Abu Dhabi Food Control Authority (ADFCA), on the Farmers Income Support Program, the UAE's agroecological climate, and introducing intelligent control systems.
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Falah Al Ahbabi, Chairman, Department of Urban Planning and Municipalities (DPM)
TBY talks to Falah Al Ahbabi, Chairman of Department of Urban Planning and Municipalities (DPM), on coordinating joint-investment programs and strategic alliances with the private sector and integrating technology within developments and services.
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Mohammed Ahmed Bin Abdulaziz Al-Shehhi, Undersecretary of Economic Affairs, the Ministry of Economy
Mohammed Ahmed Bin Abdulaziz Al-Shehhi, Undersecretary of Economic Affairs of the Ministry of Economy, on efforts to enhance the UAE's intellectual property framework, creating a knowledge-based economy, and fostering a culture of innovation.
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Khalifa Al Mubarak, Group Chief Executive Officer & Managing Director, Mubadala Investment Company
TBY talks to Khaldoon Khalifa Al Mubarak, Group Chief Executive Officer & Managing Director of Mubadala Investment Company, on the company's diversification strategy, its technology investments, and its focus on innovation.
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Rashed Lahej Al Mansoori, Chairman, Statistics Centre- Abu Dhabi (SCAD)
TBY talks to Rashed Lahej Al Mansoori, Chairman of Statistics Centre-Abu Dhabi (SCAD), on its efforts to improve data collection and lower costs, innovative statistical development tools, and its Emiratization policies.
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Saeed Al Neyad, Director General, Abu Dhabi Monitoring and Control Centre (ADMCC)
TBY talks to Saeed Al Neyadi, Director General of Abu Dhabi Monitoring and Control Centre (ADMCC), on being a critical enabler for various key partner organizations, efforts to increase Abu Dhabi's competitiveness in tourism and commerce, and improving the quality of life for citizens and visitors.
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Nick Cochrane-Dyet, Chairman, British Business Group (BBG)
TBY talks to Nick Cochrane-Dyet, Chairman of British Business Group (BBG), on Abu Dhabi's forward-looking strategy, the need for British firms to continue to bring value to the Emirate, and areas of opportunity for the UK.
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